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Cryptocurrency

South Korea Pushes Crypto Tax Deadline to 2029

South Korea is set to delay its cryptocurrency capital gains tax for the fourth time, moving the implementation date from 2027 to 2029. Finance Minister Lee Hyoung-il confirmed the proposal this week, citing the need for better integration with international transaction reporting systems and more robust domestic regulatory frameworks.

South Korea Pushes Crypto Tax Deadline to 2029

The proposed tax structure remains unchanged, featuring a 22% levy on annual cryptocurrency profits exceeding 2.5 million won—approximately $1,869. Officials argue that launching the tax earlier would create a disadvantage for domestic investors, as authorities currently lack the necessary mechanisms to track and verify transactions conducted on overseas platforms. The government intends to synchronize its tax collection efforts with data-sharing agreements, specifically targeting information exchanges with the United States expected by 2029.

To soften the impact of the new rules, the Finance Ministry is drafting provisions for a three-year loss carryforward, allowing investors to offset future taxable gains with past investment losses. A public-private working group will convene to refine reporting requirements and simplify tax return filings. While the proposal reflects a consensus between the administration and ruling party lawmakers, it still requires formal approval from the National Assembly during the 2027 legislative session. Until that vote occurs, the existing statutory deadline remains in place.

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